In the last three months to July 2011, manufacturing production was 4.5% higher than a year ago, but was almost unchanged compared to the first quarter.

Manufacturing production in recent months has been affected by supply disruptions stemming from the Japanese tsunami. Manufacturing output is now some 14% higher than its trough in early 2009 and still 8% below its peak in early 2008.

Recent falls in business confidence indicate a slower growth rate in the second half of the year, but industrial confidence is still above its long-term average. High energy and other input prices, supply disruptions from the Japanese earthquake, fiscal retrenchment in some countries, and some continued limitations on access to finance are adversely affecting the dynamics of the recovery. Output in the construction sector has stabilised at a relatively low level, with a recovery visible in civil engineering.